Press Release

VIS Reaffirms Fund Stability Rating of First Habib Cash Fund
 

Karachi, December 31, 2019: VIS Credit Rating Company Limited has reaffirmed the fund stability rating (FSR) of First Habib Cash Fund (FHCF) at ‘AA(f)’ (Double A(f)). The rating signifies high degree of stability in Net Asset Value. Risk is considered modest but may vary slightly from time to time because of changing economic conditions. The previous rating action was announced on December 24, 2018.

FHCF is structured as a money market fund; in line with its mandate, the fund’s exposure to various sources of risks has been maintained at low end of the risk spectrum. Net assets of the fund have remained stable during the period under review and amounted to Rs. 2.1b at end-November 2019. During FY19, average month-end allocation to government paper was recorded at over 40%, though at end-June 2019, exposure in the same was much lower at 5.5%. Remaining exposures were maintained with highly rated counterparties, in line with the investment policy, which stipulates minimum issue/issuer rating of ‘AA’. Weighted average maturity of the fund’s assets has varied over the last year, while remaining within maximum policy limit. Investor concentration remains high; short maturity profile and quality of assets mitigates the associated liquidity risk.

For further information on this rating announcement, please contact Mr. Jamal Abbas Zaidi (Ext: 207) or Ms. Muniba Abdullah, CFA (Ext: 215) at 021- 35311861-66 or email at info@vis.com.pk.



Atiq Anwar Mahmudi
Advisor

Applicable Rating Criteria: Fund Stability Ratings (September, 2018)
http://vis.com.pk/kc-meth.aspx

________________________________________________________________________________________________________________________________
Information herein was obtained from sources believed to be accurate and reliable; however, VIS Credit Rating Company Limited (VIS) does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information.VIS , the analysts involved in the rating process and members of its rating committee do not have any conflict of interest relating to the rating(s)/ranking(s) mentioned in this report.VIS is not an NRSRO and its credit ratings are not NRSRO credit ratings.VIS is paid a fee for most rating assignments. This rating/ranking is an opinion and is not a recommendation to buy or sell any securities. Copyright 2019 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .

VIS Credit Rating Company Limited